Transcript Plenary Slides - Construction Industry Institute

A Two-Tier Work Force Strategy
Center for Construction
Industry Studies
(CCIS)
Richard L. Tucker
CPI Conference 2001
A Two-Tier Work Force Strategy
Richard Tucker
Center for
Construction Industry Studies
CPI Conference 2001
Agenda
• Center for Construction Industry
Studies
• Work Force Issues
• The Two-Tier Concept
• Tier II
• A Necessary Element: Metrics
• Path Forward
Center for
Construction
Industry Studies
Center for
Construction Industry Studies
• Established in 1996
• Funding from Sloan Foundation
• Strong CII Interface
• Research Thrust Areas
http://www.ce.utexas.edu/org/ccis/
CCIS Thrust Areas
• Fully Integrated and Automated
Project Processes (FIAPP)
• Owner/Contractor Work Structure
(OCWS)
• Technology (Construction Methods)
• Construction Work Force
Work Force Issues
Two Tier Concept Evolution
Previous
- Many Studies by Many Groups
May 2000
- CCIS Work Force Steering Committee
February 2001
- Tier II Workshop
- Tier II Metrics Development
June 2001
- CCIS Work Force Steering Committee
(Tier II)
- CII Research Team 182 (Tier I)
- CII BM&M (Construction Success)
July 2001
- Tier II Workers Workshop
August 2001
- CII Annual Conference
September 2001 - CPI Conference
Future
- Pilot Projects
Work Force Steering Committee
Dan Bennet
David Bush
NCCER
Adena Corporation
Keith Byrom
Randy Evans
Ned Givens
Ken Hedman
Zachry Construction Corp.
BE&K
CII
Bechtel
Jim Jeffress
Ted Kennedy
Doug McCarron
DuPont
BE&K
United Brotherhood of Carpenters
and Joiners of America
Cherne Contracting Corp.
Jim Mortell
James Slaughter S&B Engineers and Constructors
Kent Underwood Solutia Inc.
Lowell Wiles
Williams Group International
Work Force Academic Effort
Richard Tucker
Carl Haas
John Borcherding
Bob Glover
Bill Kelly
Stephen Thomas
Current
Students
Nicole Balli
Erin Cannon
Jorge Castañeda-Maza
Soon-Woong Chang
Derek Edward
Lizabeth Howard
Kamel Saidi
David Shields
Former
Students
Christine Alemany
Rebecca Burleson
Lynn Ann Carley
Jason Eickmann
Jorge Gomar
Paul Goodrum
Alexander Oey
Mike Pappas
Ana Maria Rodriguez
Julien Saillard
Algernon Stanley
Kevin Terrien
Faculty
Causes, Effect & Solutions
Low Pay
Poor
Environment
Poor Career
Path
Poor Image
Transient
Nature
WORKER SHORTAGE
More Money
Step
Change
Foreign
Workers
Automation/
Technology
Causes, Effect & Solutions
Low Pay
Poor Career
Path
Poor Image
WORKER SHORTAGE
Step
Change
Construction Labor Wages
Construction vs. Manufacturing Wages 1970-2000
Non-supervisory workers. Average hourly wages.
(1982-84=100)
Does not include fringe benefits
Average hourly wages
(1982-84=100)
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
1970
1975
1980
Construction
Source: Business Statistics of the United States, Fifth Edition, 1999.
Original sources: U.S. Department of Labor, Bureau of Labor Statistics
U.S. Department of Commerce, Bureau of the Census
1985
1990
1995
Manufacturing
2000
Industry Image
Industry Image
Industry Image
Initiatives
• Motivation programs
• Overtime/expense pay
• Incentives
• Day-care centers
• Vocational schools/early
recruitment
• In-house training/
progression programs
• Information technology
usage
• High-performance work
teams/worker
empowerment
• Foreman computer usage
• Prefabrication/
pre-assembly
• Industry Image
• Metrics-based
productivity
• Career path
• Benefits
• Recruitment
The Two-Tier Concept
(A Step Change Approach)
Work Force Needs
Work
Force
Needs
Total
Tier I
Unstructured
Tier II
Time
Two-Tier Concept
Element
Worker Profile
Tier I
Tier II
Average
Above Average
Workers' Management Skills
N/A
Selected
Career Path
N/A
Planned
Task Oriented
Multi-skilled
High
Moderate
Reduced
High
Workers' Technical Skills
Training
Management Supervision
Crew Flexibility
Two-Tier Concept
Tier I Project Approach
- Limited worker skills
- Task training
- High level of supervision/management
Tier II Project Approach
- Better, fewer workers
- Worker management skills
- HPWT management approach
Hypothesis
Construction Phase
Success Index
10
0
10
Tier I
Implementation
Index
Unstructured
(Current)
10
Tier II
Implementation
Index
Concurrent Efforts
CII
BM&M
“Construction
Success”
CII
RT 182
“Tier I”
CCIS
“Tier II”
Tier I
• More and less skilled workers
• Task training
• Limited craft flexibility
• Shorter individual craft time on a project
• More detailed supervision
• “White collar” administration (planning,
purchasing, scheduling, etc.)
• Minimal worker loyalty to firm/project/
industry
Tier II
Tier II Strategy Objectives
• Comparable or lower costs
• Better quality
• Better safety
• Better schedule
• Better productivity
• More predictability
• Less administration/supervision
• Fewer workers/less turnover on a project
• Higher company/project loyalty
• Less attrition of workers (career path)
Typical Worker Activity
Current
Tier II
50%
Direct
Work
Direct
Work
30%
Support
Work
20%
Delays
Support
Work
Delays
Tier II Strategy Characteristics
• Higher compensation for workers
(wages & duration on site)
• Fewer workers on site (less peak and turnover)
• Different journeyman/helper mix
• Higher worker craft skills (certified)
• Multiskilled workers (certified)
• Administration-skilled workers (certified)
(computers, planning, scheduling, controls, etc.)
• Less supervision/higher worker autonomy
• Appropriate management approach (certified)
How to Accomplish?
• Phase in over time
• Pilot projects for Tier I & Tier II
strategies
• Assessment/monitoring of
effectiveness
• Metrics
A Necessary Element:
Metrics
Purpose of Metric
• Measure Effectiveness
• Provide Guidance for
Implementation
Expected Results
Construction
Success
0
Tier II Project Index
(Level of Implementation)
10
Tier II Project Index
• Necessary Elements
• Quantification
Tier II Project Index
Worker Capabilities
Value
Technical Skills
2.0
Management Skills
2.0
Project Execution
Information Technology Utilization
2.0
Craft Utilization
2.0
Organization
2.0
Maximum Total
10.0
Tier II Project Index
Craft Technical Skills Index*
(Max = 2.0)
Craft Certification
Technical Experience
Continuous Training
* For key crafts
Tier II Project Index
Craft Management Skills Index*
(Max = 2.0)
Administrative
Computer
Planning
Job Management
Work Record
* For key crafts
Tier II Project Index
Information Technology
Utilization Index
(Max = 2.0)
Integrated Information Access
Hardware
Tier II Project Index
Craft Utilization Index
(Max = 2.0)
Crew Mix
Use of Multiskilled Workers
Worker Turnover Ratio
Tier II Project Index
Organization Index
(Max = 2.0)
Communications
High Performance Work Place
Tier II Project Index
Worker Capabilities
Value
Technical Skills
2.0
Management Skills
2.0
Project Execution
Information Technology Utilization
2.0
Craft Utilization
2.0
Organization
2.0
Maximum Total
10.0
Expected Results
Construction
Success
0
Tier II Project Index
(Level of Implementation)
10
Work Force Needs
Work
Force
Needs
Total
Tier I
Unstructured
Tier II
Time
Implementation Sessions
Moderator
Randy Evans, BE&K
Implementation Sessions
Agenda:
• Elaboration of Two-Tier Concept
• Tier II Elements and Metrics
• Example Demonstration
• Participant Input
Your Duty
Come to
Implementation Session
Volunteer
Pilot Projects
Construction Project Improvement
Conference
2001: A Construction Odyssey
Trends and Perspectives
Construction Industry Institute
Austin, Texas